Finding 618353 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 38968
Organization: Boyd County Nebraska (NE)

AI Summary

  • Core Issue: Lack of adequate personnel leads to insufficient segregation of duties in handling transactions.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are managed by different employees.
  • Recommended Follow-up: Explore cost-effective ways to segregate duties to reduce risks of errors or irregularities.

Finding Text

MATERIAL WEAKNESS 2022-003 Internal Control Structure Design Program: Disaster Grants ? Public Assistance CFDA# 97.036 Condition: Adequate personnel are not available to assign responsibilities in such a way that different employees handle different parts of the same transaction. Cause: County has limited Number of personnel. Criteria: Internal controls should be in place that provides reasonable assurance that authorization or approval of transactions, recording of transactions, and custody of assets are segregated activities. Effect: Due to the absence of segregation of duties, the level of risk that errors or irregularities, material in relation to the financial statements, may occur and not be detected within a timely period by the employees, in the normal course of performing their assigned functions, has not been reduced to a relatively low level. Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Questioned Costs: $0.00 Grantee Response/Corrective Action Plan: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 41911 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.00M
20.205 Highway Planning and Construction $134,663
93.563 Child Support Enforcement $2,000
20.600 State and Community Highway Safety $1,082